Industry profile: India is the largest provider of generic drugs globally. Indian pharmaceutical sector industry supplies over 50 percent of global demand for various vaccines, 40 percent of generic demand in the US, and 25 percent of all medications in the UK.
India enjoys an important position in the global pharmaceuticals sector. The country also has a large pool of scientists and engineers who have the potential to steer the industry ahead to an even higher level. Over 80 percent of the antiretroviral drugs used globally to combat AIDS (Acquired Immuno Deficiency Syndrome) are supplied by Indian pharmaceutical firms. The pharmaceutical sector was valued at US$ 33 billion in 2017. The country’s pharmaceutical industry is expected to expand at a CAGR of 22.4 percent over 2015–20 to reach US$ 55 billion. India’s pharmaceutical exports stood at US$ 17.27 billion in 2017-18 and are expected to reach US$ 20 billion by 2020. Indian companies received 304 Abbreviated New Drug Application (ANDA) approvals from the US Food and Drug Administration (USFDA) in 2017. The country accounts for around 30 percent (by volume) and about 10 percent (value) in the US$ 70-80 billion US generics market. India’s biotechnology industry comprising bio-pharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics is expected to grow at an average growth rate of around 30 percent a year and reach US$ 100 billion by 2025. Biopharma, comprising vaccines, therapeutics, and diagnostics, is the largest sub-sector contributing nearly 62 percent of the total revenues at Rs 12,600 crore (US$ 1.89 billion).
Company Profile: Abbott India is an Indian subsidiary of American healthcare company Abbott Laboratories. The company existed in India officially in 1944 but has lived in India since 1910 under different names. The parent and the Indian business has a strong brand presence in many categories with 480+ products ( and some are in the pipeline) like woman’s healthcare, gastroenterology, neurology, thyroid, diabetes, Urology, depression, epilepsy, vitamins, and pain management. The company is famous for its nutritional products under different brands (like Similac, Pediasure, Ensure, Glucerna, Nepro, Mama’s Best) for women, babies, infants, and special dietary needs. The compy is the market leader in at least 16 branded medications with 1, 2, and 3 numbers. Digene is one of the well-known antacids with a 19.7% market share. The company has its two own facilities and 25+ third-party facilities.
Shareholding pattern: BSE Data
Financials and ratio : [table id=182 /]
Future Prospects: When you are an Indian subsidiary of a global pharma giant, I believe you don’t need the section of the FUTURE prospectus. It is always good. India is where you always need healthcare products, vaccines, and medicines as we are 1.3 billion and one of the leading manufacturers of generic pharma. I understood that when the company exists in India, it will get a reasonable valuation. That is indeed taking place.
